[Asia Economy Reporter Kwon Jaehee] HYBE recently announced on the 6th that it has secured an additional 0.98% stake through a tender offer to acquire management rights of SM Entertainment (SM).
With this, adding the 14.8% stake HYBE acquired from former chief producer Lee Soo-man, the total stake HYBE currently holds amounts to 15.78%.
HYBE attempted to secure stable management rights by conducting a tender offer for SM shares at 120,000 KRW per share over 20 days starting from the 10th of last month, aiming to purchase up to 25% of the total issued shares. However, as SM's stock price exceeded the 120,000 KRW mark, this plan failed.
Earlier, Galaxia SM, a sports marketing company affiliated with the Hyosung Group, disclosed that it responded to HYBE's tender offer by selling 233,813 shares.
The number of shares tendered in response to HYBE's offer this time was 233,817, meaning that excluding Galaxia SM, only 4 shares were tendered. Practically no shareholders responded to the tender offer, resulting in less than 4% of the target volume being fulfilled.
HYBE stated in the disclosure, "Since the number of shares tendered was below the planned purchase quantity, all tendered shares were purchased," and "The tender offer payment will be made in cash."
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